Armenia hopes for Iranian credit to build hydro plant

Interfax
June 22 2004
Yerevan. (Interfax) - Armenia is hoping to receive a credit from
Iran to build a hydroelectric plant on the Araks river, the cost of
which is estimated at $140 million, Armenian Energy Minister Armen
Movsisian told journalists.
He said that Armenia plans to repay the credit with supplies of
electricity to Iran.
The minister said that there are plans to build two identical
hydroelectric plants on the Araks river - the Megrin Hydroelectric
Plant on Armenian territory and the Karachilar Hydroelectric Plant
in Iran. Movsisian said that in the coming two months a feasibility
study would be prepared for the construction of Megrin Hydroelectric
Plant. Construction is set to begin in mid-2005 and an agreement with
Iran will be signed by the end of this year.
The minister said that the plant will have a capacity of 140
megawatts and will produce 841 million kWh of electricity per year.
For comparison he said that 30 small hydro plants are operating in
Armenia, producing a total of 600 million kWh of electricity per
year. He said that the new plant would be the best in Armenia as
regards its technical and economic parameters and in time it is planned
to build a whole chain of plants on the Araks river together with Iran.
The Armenian government and Energy Ministry are currently working on a
program to develop alternative energy production, to ensure Armenia's
security in the event of Armenian Nuclear Power Plant closing. The
main emphasis in this program is being placed on developing hydro
production.